Clean tech could save households £37,000 over 15 years

Installing heat pumps, solar panels, insulation, EVs and batteries can save households thousands (Alamy/PA) PA Media

Households could save £37,000 over 15 years by installing clean technology including heat pumps, solar panels and electric car charging points, new research suggests. The potential savings come despite significant upfront costs that many families find prohibitive.

Energy company Ovo's report, reviewed by academics from the universities of Exeter, Leeds and Stirling, examined six green measures: heat pumps, home insulation, solar panels, leased electric vehicles, home EV chargers and smart meters. The average household would pay around £15,500 after incentives to install all the technologies.

Return on investment within five years

However, families would recoup their investment within five years through reduced energy bills. Savings from efficient heating, home-generated solar power, battery storage and cheaper-to-run electric vehicles would total around £17,600 by that point.

Even accounting for inflation and borrowing costs, net savings could exceed £23,000 over 15 years. The research highlights the long-term financial benefits of green technology adoption despite the initial expense.

Upfront costs remain major barrier

Nearly three quarters of people cited upfront costs as their main reason for delaying green technology adoption, with two thirds needing to prioritise immediate financial needs over long-term savings. The survey of more than 4,000 people found 92% of households earning less than £30,000 annually considered green technologies "out of reach" financially.

Private rental tenants face particular challenges, with 81% feeling "trapped in energy inefficient homes" because landlords lack incentives to pay upfront costs when tenants receive the bill savings. Despite these barriers, 78% of respondents wanted to decarbonise their homes further.

Knowledge gaps hinder adoption

The research revealed significant awareness problems around green technology benefits. Just 41% of households knew heat pumps could reduce energy bills over time, whilst 64% felt confused about which technologies would suit their homes best.

Ovo is calling for expanded grants and low-cost loans to help families make the switch, particularly those on lower incomes. The company also wants a social tariff to support vulnerable people through the UK's clean energy transition.

Industry calls for policy changes

David Buttress, Ovo's chief executive, said the debate around net zero had become distorted. "Net zero is framed as expensive and unrealistic - but the data is clear: not decarbonising will cost households and the country far more," he said.

Dr Maximilian Gerrath of the University of Leeds said consumers were "navigating a maze of fear, complexity, and inertia" when considering green technology. "Most people don't resist green upgrades because they dislike them - they resist because the benefits feel distant, while the costs are immediate," he said.

Government investment pledged

A Department for Energy Security and Net Zero spokesperson said the findings showed families could save thousands of pounds annually by upgrading their homes. "We are investing £13.2 billion to upgrade up to five million homes over this parliament, while supporting industry to develop financing models that can remove the upfront cost entirely," they said.

The research joins widespread calls to reduce electricity costs, which remain significantly more expensive than gas partly due to high policy costs added to power bills. Lower electricity prices would further incentivise the switch to electric heat pumps and cars.

(PA/London) Note: This article has been edited with the help of Artificial Intelligence.